Appeal Dismissed: Misconduct Case to Be Heard in Karnataka Due to Jurisdiction Rules.

The High Court dismissed the appeal due to lack of territorial jurisdiction, directing the Appellant to approach the Karnataka HC. The Court held that the alleged misconduct of the company occurred in Karnataka, where the company's registered office is located, making it the appropriate jurisdiction under the doctrine of forum conveniens.

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Issues: Lack of territorial jurisdiction for writ petition seeking investigation into the affairs of a company.

In this case, the Appellant filed an appeal challenging the judgment passed by the Single Judge dismissing their writ petition seeking an investigation into the affairs of a company by the SFIO. The Appellant argued that the cause of action for the writ petition, based on the inaction of the Ministry of Corporate Affairs, arose within the territorial jurisdiction of the High Court. On the other hand, the Union of India contended that an investigation had already been ordered by the Central Government under the Companies Act, 2013. The High Court referred to the doctrine of forum conveniens and analyzed the nature of the cause of action, citing precedents like Sterling Agro Industries Ltd. vs. Union of India & Ors. The Court found that the alleged acts of cheating and misappropriation of funds by the company and its directors had arisen in the State of Karnataka, where the subject land and relevant agreements were located and executed. As the registered office of the company was in Karnataka, the High Court with jurisdiction over the issues arising from the NCLT order would be the Karnataka High Court. Therefore, the High Court dismissed the appeal, directing the Appellant to approach the Karnataka High Court instead.

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